By Alex Seitz-WaldAssociated PressThe U.S. stock market is expected to soar higher in the coming days after a week of strong gains, as analysts believe a rally in energy prices will fuel a further rebound.But if the market does not move forward much faster, it could be a very big bubble.Here are five ways to watch the market for signs of a market correction.1.Stock prices will be lower than they h...
It’s been just a few weeks since the U.S. consumer price index fell to its lowest level in nearly five years, but there’s no telling how the country’s economy will look in the coming weeks.
The latest report from the U,S.
Labor Department shows that the U-2 index of consumer spending slipped to its weakest level in four years in January.
Meanwhile, the median price of a home fell to $2.5 million in January, and prices of cars and appliances rose.
The latest report shows that despite the low index of inflation, the country remains mired in a deep recession.
“The weak economic data continues to slow the recovery,” said James Pethokoukis, a senior economist at the Brookings Institution.
“In the absence of any sign of improvement, the Federal Reserve is likely to raise interest rates sooner rather than later.
That could result in a further decline in the economy and further deflation.”
In addition, the number of Americans with jobs declined to its smallest level in over six years in December, according to the latest data from the Bureau of Labor Statistics.
Pethokouksis explained that while the U’s unemployment rate has been declining, the U is still seeing a huge number of people leaving the labor force.
“That’s going to cause a lot of people who are looking for work to go elsewhere,” he said.
While the U stock market remains buoyant, analysts are cautioning that there is still a long way to go before the economy can really get going.
One of the biggest worries for investors is that the economic recovery is going to be delayed.
“The U.K. and the rest of the developed world have been on a path to recovery for a long time, and they seem to be going well,” Pethakoukis said.
“It seems that the recovery will be delayed for now.
And if you’re looking at a global outlook, you could have an extended recovery in the US.”
For more from the Wall Street Journal, go to washingtonpost.com/dish.